Manufacturing must be the way to engineer a prosperous future

FOR too many people, manufacturing is a dirty word, said Fenner chief executive Mark Abrahams.

Tucked away in a corner of London, the Hull-based manufacturer is quietly helping to shatter this illusion.

Inside Fenner's advanced seals factory, 37 injection moulding machines hum simultaneously. A handful of staff move between the moulds, pausing to adjust automatic controls. One man operates five trimming machines, adding the finishing touches to bespoke seals used in devices ranging from hydraulic diggers to oil drilling rigs.

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A testing rig – believed to the only one of its kind in the country – makes sure Fenner's seals are up to the job, putting them under huge pressure to test their durability. Standing amid the gleaming machinery, Mr Abrahams said manufacturing needs to regain respect.

His company, a FTSE 250 global leader in conveyor belting and hydraulic seals, has a vested interest in UK colleges and universities producing a steady stream of skilled employees.

"Do you want to come out of university with a degree and go into nice financial services or go into grubby manufacturing?" he asked rhetorically.

"In many ways it's a lot more exciting. It should be pulling in some of the best brains in the world. The opportunities if you're a bright engineer are great. But manufacturing is a dirty word."

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The National Strategic Skills Audit yesterday confirmed the obvious: the UK needs fewer beauticians and town planners and more scientists and engineers. "Over the next decade, Britain's economy is going to need a new wave of private sector investment in long-term business creation and job creation," said business secretary Lord Mandelson. "This is about making the economy ready for a decade of industrial and economic renewal in Britain. We will need new industrial strengths and we will need to reinforce our position as global leaders in innovative manufacturing and services."

Politicians of all shades appear to be grasping the importance of a sector that makes up almost 13 per cent of the economy. But Mr Abrahams is not holding his breath.

"They have recognised that it's essential, but you cannot switch on manufacturing at the flick of a switch," said Mr Abrahams.

"Right now we recognise that one way out of the recession is to export more, but you cannot do that on a whim.

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"We have got to say 'For the next 20 years, this is where we see our future'."

He believes Fenner's London seals factory is a prime example of the approach to manufacturing that the UK needs to invest in. The model is replicated around the world in Fenner's other seals factories in the US, Germany, China and Australia, each of which supply to their own regional markets.

"This business is a world leader – this takes years and years to create," he said.

The plant was built from scratch three years ago at a cost of about 10m.

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It employs about 200, ranging from machine operators to compound scientists.

Operating 24 hours a day, five days a week, it supplies customers across the UK and Europe. It produces thousands of different seals, many of which are designed to withstand huge pressure. The firm prides itself on its ability to respond to customers' orders rapidly. Bespoke orders are delivered within four weeks. In November, the rate of orders delivered on time and in full peaked at 95 per cent.

Its products are "mission critical", so the group says it does not have to compete with volume manufacturers, who spew out thousands of low-cost products.

"If you buy a cheap Chinese seal and it fails it could cost you millions just in one poor decision," said Mr Abrahams.

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The group has not emerged from the recession unscathed – severe destocking meant it had to cut jobs and trim wages. But with orders returning, Fenner said it is in an enviable position to pick up market share.

"In bad times when people have taken out stock it can be a matter of life or death," said Mr Abrahams. "Some of our competitors have let them down. We collect them with open arms."

Time to rebalance the economy

The manufacturers' organisation, the EEF, says Government must "re-build and re-balance" the UK economy by putting manufacturing at its heart.

In its recently published manufacturing manifesto "Back at the Crossroads", the EEF argued for a bold strategy to grow markets and stimulate investment in innovation and skills. EEF policy director Steve Radley said: "At the start of the last decade, EEF warned that the UK's economy was at a crossroads: either we grew our manufacturing base or our economy would suffer. After a painful and prolonged recession, the UK is back at that crossroads."

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He said the business environment must become less hostile to manufacturers.

"UK manufacturers are successful despite operating in a business environment that actively discourages their investment and growth," he said. "Subtle, yet inherent biases against manufacturing in the tax, regulatory, skills and finance systems must change if we're going to rebalance our economy."